VA Fiduciary 2026: Complete Guide to the Program

VA Fiduciary: Complete 2026 Guide to the VA Fiduciary Program

A VA fiduciary is a person or organization appointed by the Department of Veterans Affairs to manage VA benefit payments for a beneficiary who cannot manage their own finances due to injury, disease, advanced age, or being under 18. In FY2024, VA fiduciaries managed nearly $2.8 billion for 101,155 beneficiaries. Beneficiaries retain the right to appeal fiduciary appointments.

Quick Facts

What Is the VA Fiduciary Program?

The VA Fiduciary Program is a VA initiative that protects veterans and other beneficiaries who are unable to manage their VA benefit payments because of injury, disease, advanced age, or because they are under the age of majority (18). When VA determines a beneficiary cannot manage their own benefits, VA appoints a fiduciary — a person or organization trusted to receive and manage VA funds on the beneficiary’s behalf.

The program exists because VA benefits are intended to support the beneficiary and their dependents. If a beneficiary cannot manage those funds, VA has a duty to ensure the money is used properly. The fiduciary program is VA’s mechanism for fulfilling that duty. VA also conducts oversight of VA-appointed fiduciaries to ensure beneficiaries’ needs are met.

In Fiscal Year 2024, VA fiduciaries managed nearly $2.8 billion in benefits for 101,155 beneficiaries. The program has undergone significant modernization focused on expediting processes while ensuring the well-being of beneficiaries remains protected.

The program is administered by the Pension and Fiduciary Service within the Veterans Benefits Administration (VBA). Fiduciary hubs, managed by Hub Managers, handle the day-to-day appointment, supervision, and oversight of fiduciaries across the country.

What you should do next: If you have been notified that VA believes you need a fiduciary, review your rights and consider whether to appeal. If you want to serve as a fiduciary for a family member, contact your nearest VA regional office.

Who Qualifies for a VA Fiduciary

A VA fiduciary may be appointed for any VA beneficiary who cannot manage their VA benefits. The following categories of beneficiaries may need a fiduciary:

• A veteran — With a service-connected or non-service-connected disability that prevents financial management

• A surviving spouse — Receiving Dependency and Indemnity Compensation (DIC) or Survivors Pension

• A dependent parent — Receiving VA benefits based on a veteran’s service

• A minor child — Under age 18 who is entitled to receive VA benefits

• A helpless child — A child permanently unable to support themselves who is entitled to VA benefits, including proceeds of VA insurance

When VA determines a fiduciary is needed

VA may determine that a beneficiary needs a fiduciary for several reasons:

• The beneficiary has an injury or disease that prevents them from managing their finances

• The beneficiary has challenges and limits related to getting older

• The beneficiary is a minor (under age 18)

• A court or judge has decided the beneficiary can no longer manage their finances

VA sometimes makes this determination when reviewing medical records and other evidence during a benefit claim. If VA decides a beneficiary needs help, VA notifies the beneficiary in their benefit decision letter.

When VA will not appoint a fiduciary

VA will not appoint a fiduciary for a beneficiary who:

• Is eligible for supervised direct payment under 38 CFR § 13.110, or

• Is not rated as unable to manage VA benefits and has not reached the age of majority, but is serving in the Armed Forces, has been discharged from service, or qualifies for survivors’ benefits as a surviving spouse

How VA Determines a Beneficiary Needs a Fiduciary

VA assumes a beneficiary is competent unless evidence shows otherwise. Under 38 CFR § 3.353, a mentally incompetent person is defined as one who, because of injury or disease, lacks the mental capacity to contract or manage their own affairs, including disbursement of funds. Rating agencies have sole authority for official determinations of incompetency for the purpose of disbursement of benefits.

What triggers a fiduciary determination

A determination of incompetency may be triggered by:

• The provision of medical evidence or a claim of incompetency by the beneficiary or an interested third party, such as a friend or relative

• The provision of medical evidence by a VA medical center

• Court documentation confirming a legal disability

The 60-day due process period

After VA issues a decision letter stating the beneficiary needs a fiduciary, VA waits 60 days before notifying the VA Fiduciary Program. This waiting period gives the beneficiary time to request a hearing or submit additional evidence. If the beneficiary does not appeal during this 60-day period, VA notifies the Fiduciary Program, which sends the beneficiary a letter explaining next steps.

Fiduciary Appointment Process

The fiduciary appointment process involves a field examination, a background investigation of the proposed fiduciary, and a formal appointment by the Hub Manager. The Hub Manager makes every effort to appoint the person, agency, organization, or institution that will best serve the interest of the beneficiary.

Step 1: Field examination

VA schedules a field exam to understand the beneficiary’s needs and select the right fiduciary. The beneficiary should have ready:

• A government-issued photo ID

• The source and amount of all monthly bills, expenses, and income

• A list of all assets, including bank accounts, owned property, stocks, bonds, life insurance, and burial plans

• The name, phone number, and address of next of kin or a friend

The beneficiary can have someone they trust with them during the field exam — a family member, caregiver, or someone they want to recommend as their fiduciary.

Step 2: Order of preference for fiduciary appointment

The Hub Manager considers individuals and entities for appointment in a specific order of preference, provided the proposed fiduciary is qualified and willing to serve:

1. The preference stated by the beneficiary, if the beneficiary has capacity to state such a preference

2. The beneficiary’s spouse

3. A relative who has care or custody of the beneficiary or their funds

4. Any other relative of the beneficiary

5. Any friend, acquaintance, or other person willing to serve without a fee

6. The chief officer of a public or private institution where the beneficiary receives care

7. The bonded officer of an Indian reservation, if applicable

8. An individual or entity appointed by a court with jurisdiction

9. An individual or entity not willing to serve without a fee

10. A temporary fiduciary, if necessary

Step 3: Investigation of the proposed fiduciary

Before appointment, VA assesses whether the proposed fiduciary qualifies. The assessment may include:

• A face-to-face interview with the proposed fiduciary (may be conducted virtually)

• A credit report review (issued no more than 30 days before the check)

• A criminal background check

• Character witness interviews

• Obtaining proof of identity and relationship to the beneficiary

• A determination regarding the need for a surety bond under 38 CFR § 13.230 and the proposed fiduciary’s ability to obtain such a bond

Step 4: Appointment by the Hub Manager

After completing the investigation, the Hub Manager appoints a fiduciary. In making the appointment, the Hub Manager considers the results of the field examination and whether VA benefits can be paid directly to the beneficiary with limited and temporary supervision by VA, as prescribed in 38 CFR § 13.110.

Retroactive benefit payments

The Hub Manager withholds any retroactive, one-time, or other lump-sum benefit payment awarded to a beneficiary who needs a fiduciary until the Hub Manager has appointed a fiduciary and, if applicable, the fiduciary has obtained a surety bond.

Who Can Serve as a VA Fiduciary

A VA fiduciary can be an individual or an entity. The most important consideration is whether the beneficiary can manage their benefits under Supervised Direct Pay with limited VA supervision. If not, VA considers the following candidates:

Note: VA is not required to recognize a court-appointed fiduciary for purposes associated with the payment of VA benefits.

If none of the above are available, VA will appoint a paid fiduciary.

How to apply to become a fiduciary

If you are interested in serving as a fiduciary, submit a request with the beneficiary’s name and VA file number, along with your name and contact information, to your nearest VA regional office. You can also submit your resume with a cover letter to VA_Fiduciary@va.gov.

Responsibilities of a VA Fiduciary

A VA fiduciary is responsible for managing the beneficiary’s VA income and ensuring the beneficiary’s just debts are paid. The fiduciary must use the funds for the daily needs of the beneficiary and their VA-recognized dependents.

Key responsibilities

Fund management:

• Utilize funds for daily needs — food, clothing, housing, medical expenses, and personal items

• Never borrow, loan, or gift funds belonging to the beneficiary

• Never commingle the beneficiary’s funds with those of another, including the fiduciary’s own

• Never withdraw cash from the beneficiary’s account by counter check or ATM withdrawal

• Conserve excess funds in federally or state-insured interest-bearing accounts or U.S. savings bonds

• Return any funds owned by the beneficiary to VA if the fiduciary stops serving

Bank account requirements:

• Establish a properly titled bank account (Beneficiary & Fiduciary names, e.g., “Beneficiary Name, by Fiduciary Name, Federal Fiduciary”)

Reporting requirements:

• Report any changes in address or phone number of the beneficiary or fiduciary

• Report changes in the beneficiary’s income or dependents

• Report incarceration of the beneficiary or fiduciary

• Report hospitalization of the beneficiary in a VA or state facility

• Report death of the beneficiary, the beneficiary’s dependents, or the fiduciary

• Report any event affecting the beneficiary’s payment or entitlement

• Notify VA if the beneficiary’s condition improves and a fiduciary is no longer needed

Record-keeping and accounting:

• Keep accurate, complete records and receipts

• Timely submit periodic accountings or fund usage review when required

• Meet with VA for periodic onsite reviews when required under law

Protecting beneficiary information

The fiduciary must take all reasonable precautions to protect the beneficiary’s private information contained in the fiduciary’s paper and electronic records.

Beneficiary Rights in the VA Fiduciary Program

Beneficiaries in the VA fiduciary program retain specific rights under 38 CFR § 13.30. These rights protect the beneficiary’s interests and ensure due process.

Core beneficiary rights

1. Right to receive direct payment — A beneficiary may receive direct payment of recurring monthly benefits until VA appoints a fiduciary if the beneficiary has reached the age of majority or older

2. Right to written notice — The beneficiary must receive written notice regarding VA’s appointment of a fiduciary or any other decision on a fiduciary matter that affects VA’s provision of benefits

3. Right to know fiduciary information — The beneficiary has the right to know the name and current contact information of the fiduciary and to contact them to request funds, account balance information, a copy of their VA-approved accounting, and other assistance consistent with the fiduciary’s responsibilities

4. Right to appeal — The beneficiary has the right to appeal VA’s finding of incompetency and the right to appeal VA’s selection of fiduciary

5. Right to request removal from the program — The beneficiary has the right to request removal from the fiduciary program and receive direct payment of VA funds

6. Right to same standard of living — Beneficiaries in the fiduciary program are entitled to the same standard of living as any other individual with similar financial resources

Additional VA benefits

A beneficiary’s disability may prevent them from applying for information or understanding information provided by VA. The fiduciary should have a general knowledge of additional VA benefits the beneficiary may be eligible for, including:

• Aid and Attendance (A&A) — Additional benefits for a veteran or surviving spouse who requires the help of another person for daily functions, is a patient in a nursing home, or is blind

• Housebound — Additional benefits for a beneficiary confined to their home due to permanent disability

• Dependency benefits — Additional benefits for certain beneficiaries who have a spouse, child, or dependent parent

Fiduciary Supervision and Oversight

VA conducts ongoing supervision of fiduciaries to ensure they are performing their duties satisfactorily and to protect beneficiaries from misuse of benefits. VA’s Fiduciary Program protects over 104,300 Veterans and other beneficiaries who are unable to manage their own VA benefit payments.

Accounting requirements

Fiduciaries must submit annual accountings to the fiduciary hub. An accounting is a written report regarding income and funds under management during the accounting period. It consists of:

• A beginning inventory or account balance

• An itemization of income

• An itemization of expenses

• An ending inventory or account balance

• Copies of financial institution documents reflecting receipts, expenditures, and beginning and ending balances

• Receipts, when required by the Hub Manager

Fiduciaries must submit accountings on the appropriate VA form (VA Form 21P-4706b) no later than 30 days after the end of the accounting period. If VA notifies the fiduciary of a discrepancy, a corrected accounting must be submitted within 14 days.

Exceptions to annual accounting

Annual accounting is not required for:

• The beneficiary’s spouse

• A chief officer of a federal institution

• A chief officer of a non-VA facility when the beneficiary’s monthly care expenses equal or exceed their VA benefit and funds under management do not exceed $10,000

• A fiduciary who resides outside the United States and was appointed outside the United States

Failure to comply

The Hub Manager treats any willful neglect or refusal to file proper accountings as prima facie evidence of embezzlement or misappropriation of VA benefits. Such evidence is grounds for starting a misuse investigation under 38 CFR § 13.400.

Periodic onsite reviews

Under 38 U.S.C. § 5508, VA must conduct periodic onsite reviews of fiduciaries in the U.S. who serve 20 or more beneficiaries with total annual recurring VA benefits exceeding the threshold established by law. The Hub Manager must complete at least one periodic onsite review triennially for fiduciaries meeting these criteria. VA provides the fiduciary with written notice at least 30 days before the scheduled review.

VA Office of Inspector General findings

A May 2025 VA OIG report found that when fiduciaries were removed for reasons that would bar future service, staff failed to flag them in VA’s electronic system in 68 percent of sampled cases (88 of 129). This occurred because the Fiduciary Program Manual lacked clear procedures about when the flag should be placed and by whom. Failure to properly flag barred fiduciaries increases the risk that they will be reappointed. VA has since implemented corrective actions to address these deficiencies.

Misuse of Benefits and Repayment

When a fiduciary misuses VA benefits, VA is required to repay the beneficiary. Public Law 119-56, the Veteran Fraud Reimbursement Act of 2025, signed December 12, 2025, strengthened this requirement.

What the law requires

Under the amended 38 U.S.C. § 6107, when a fiduciary misuses all or part of a beneficiary’s benefits, the Secretary shall pay the beneficiary or the beneficiary’s successor fiduciary an amount equal to the amount misused. VA must make a good faith effort to obtain recoupment from the fiduciary who misused the benefits. If VA obtains recoupment, it must promptly remit the recouped amounts to the beneficiary to the extent they have not already been paid.

Limitations on repayment

The total amount paid to a beneficiary under this section may not exceed the total benefit amount misused by the fiduciary. VA may not withhold reissuance of benefits by reason of a pending determination of whether the Secretary was negligent.

Criminal penalties

Misuse of VA benefits by a fiduciary can result in federal criminal prosecution. In one 2026 case, a Rankin County, Mississippi woman pleaded guilty to misappropriating more than $100,000 in VA funds intended for her disabled adult son over a five-year period. She used the funds for personal benefit, including purchasing a vehicle the beneficiary never used, paying personal bills, and taking trips. She faced up to five years in prison.

Appeals: Challenging Fiduciary Decisions

Beneficiaries can appeal certain fiduciary decisions to the Board of Veterans’ Appeals. Under 38 CFR § 13.600, the following decisions are appealable:

1. The Hub Manager’s appointment of a fiduciary under § 13.100

2. The Hub Manager’s removal of a fiduciary under § 13.500

3. The Hub Manager’s misuse determination under § 13.400

4. The VA Regional Office Director’s final decision upon reconsideration of a misuse determination

5. The Director of the Pension and Fiduciary Service’s negligence determination for purposes of reissuance of benefits

What cannot be appealed

Except for the specific decisions listed above, VA decisions regarding fiduciary matters are committed to the Secretary of Veterans Affairs’ discretion by law and cannot be appealed to the Board of Veterans’ Appeals or any court.

Three decision review options

If you disagree with a VA decision on a fiduciary claim, you can choose from three decision review options:

You have one year from the date on your decision to request a Higher-Level Review or a Board Appeal. You can file a Supplemental Claim anytime, but filing within one year is recommended.

How to file

• Supplemental Claim: Fill out VA Form 20-0995. You must add evidence that VA did not have before that supports your case.

• Higher-Level Review: Fill out VA Form 20-0996. You cannot submit any evidence. You and/or your representative can speak with the reviewer by phone.

• Board Appeal: Fill out VA Form 10182. You have three options: Direct Review (no new evidence, no hearing), Evidence Submission (new evidence, no hearing), or Hearing (new evidence and a hearing with a Veterans Law Judge).

Second Amendment Rights Update (2026)

On February 17, 2026, VA announced that it will no longer report veterans to the FBI’s National Instant Criminal Background Check System (NICS) as “prohibited persons” solely because they need help from a fiduciary in managing their VA benefits.

This policy change corrects a three-decade-old practice that deprived many thousands of veterans in VA’s Fiduciary Program of their constitutional right to own a firearm without a legal basis. VA determined, in consultation with the Department of Justice, that this practice violated both the Gun Control Act and veterans’ Second Amendment rights. Under federal law, a decision by a judicial or quasi-judicial body is needed before someone can be reported to NICS. A determination by VA that a fiduciary is needed falls short of that legal standard.

VA is working with the FBI to remove all past VA reporting from NICS so that no veterans are unfairly deprived of their Second Amendment rights based solely on participation in VA’s Fiduciary Program.

Common Mistakes

1. Not appealing within the 60-day due process period.
After receiving a decision letter stating you need a fiduciary, you have 60 days to request a hearing or submit additional evidence before VA notifies the Fiduciary Program. Missing this window limits your options.

2. Assuming you cannot challenge the incompetency finding.
You have the right to appeal VA’s finding of incompetency and VA’s selection of fiduciary to the Board of Veterans’ Appeals.

3. Not recommending a preferred fiduciary.
When VA contacts you before your field exam, you may suggest a person you trust to be your fiduciary. VA considers your preference whenever possible. If you do not recommend someone, VA may appoint a professional fiduciary.

4. Failing to provide complete financial information at the field exam.
Have ready your photo ID, monthly bills and income sources, a list of all assets, and next-of-kin contact information. Incomplete information delays the process.

5. Not knowing your rights as a beneficiary.
You have the right to know your fiduciary’s name and contact information, request funds and account balances, and request removal from the program if you believe you can manage your benefits.

6. Not understanding what cannot be appealed.
VA decisions regarding fiduciary matters are generally committed to the Secretary’s discretion and cannot be appealed. Only specific decisions — fiduciary appointment, removal, misuse determination, and negligence determination — are appealable.

7. Waiting to report misuse.
If your fiduciary misuses your benefits, report it immediately. Public Law 119-56 requires VA to repay misused benefits to the beneficiary. Criminal penalties also apply to fiduciaries who misappropriate funds.

Common Questions

What is a VA fiduciary?

A VA fiduciary is a person or organization appointed by the Department of Veterans Affairs to receive and manage VA benefit payments on behalf of a beneficiary who cannot manage their own finances due to injury, disease, advanced age, or being under 18. The benefits must be used to support the beneficiary or their dependents.

Who can have a VA fiduciary appointed?

VA may appoint a fiduciary for a veteran, surviving spouse, dependent parent, minor child, or helpless child who has been awarded VA benefits but is unable to manage their VA funds because of injury, disease, advanced age, or age.

How does VA decide I need a fiduciary?

VA may determine you need a fiduciary if you have an injury or disease that prevents you from managing your finances, have challenges related to getting older, are a minor, or a court has decided you can no longer manage your finances. VA notifies you in your benefit decision letter.

What happens after I receive the decision letter?

VA waits 60 days before notifying the VA Fiduciary Program. This waiting period gives you time to request a hearing or submit additional evidence. If you do not appeal during this period, VA notifies the Fiduciary Program, which sends you a letter explaining next steps.

How does VA choose my fiduciary?

When VA contacts you before your field exam, you may suggest a person you trust. VA considers your preference whenever possible and follows a specific order of preference: your spouse, relatives, friends, institutional officers, court-appointed fiduciaries, and professional fiduciaries.

What are my rights as a beneficiary in the fiduciary program?

You have the right to receive direct payment until a fiduciary is appointed, receive written notice of decisions, know your fiduciary’s contact information, appeal the incompetency finding and fiduciary appointment, and request removal from the program.

Can I appeal the decision that I need a fiduciary?

Yes. You have the right to appeal VA’s finding of incompetency and VA’s selection of fiduciary to the Board of Veterans’ Appeals. You can file a Supplemental Claim, request a Higher-Level Review, or request a Board Appeal.

What is the 60-day due process period?

After VA issues a decision letter stating you need a fiduciary, VA waits 60 days before notifying the VA Fiduciary Program. This gives you time to request a hearing or submit additional evidence to challenge the decision.

What happens if my fiduciary misuses my benefits?

Public Law 119-56, signed December 12, 2025, requires VA to repay you the amount of benefits misused by your fiduciary. VA must make a good faith effort to recoup the funds from the fiduciary and remit them to you. Criminal penalties also apply.

Can I request a different fiduciary?

Yes. You can request that VA replace your current fiduciary with a new one. You also have the right to request removal from the fiduciary program and receive direct payment if you believe you can manage your benefits.

What is an accounting in the fiduciary program?

An accounting is a written report the fiduciary submits annually regarding income and funds managed for the beneficiary. It includes beginning and ending balances, itemized income and expenses, and financial institution documents. Failure to file proper accountings is treated as prima facie evidence of misappropriation.

Does having a fiduciary affect my Second Amendment rights?

No, as of February 17, 2026. VA no longer reports veterans in the Fiduciary Program to the FBI’s NICS system as “prohibited persons” solely because they need help managing their VA benefits. VA is working to remove all past reporting.

Key Takeaways

• The VA Fiduciary Program protects beneficiaries who cannot manage their VA benefits due to injury, disease, advanced age, or being under 18.

• In FY2024, VA fiduciaries managed nearly $2.8 billion for 101,155 beneficiaries.

• VA assumes a beneficiary is competent unless evidence shows otherwise under 38 CFR § 3.353.

• After a decision letter, VA waits 60 days before notifying the Fiduciary Program, giving you time to appeal.

• Beneficiaries retain rights including the right to know their fiduciary, request removal from the program, and appeal certain decisions.

• Fiduciaries must file annual accountings; failure to do so is treated as prima facie evidence of misappropriation.

• Public Law 119-56 (Veteran Fraud Reimbursement Act of 2025) requires VA to repay misused benefits to beneficiaries.

• Only specific fiduciary decisions are appealable: appointment, removal, misuse determination, and negligence determination.

• VA stopped reporting fiduciary program participants to NICS on February 17, 2026, protecting Second Amendment rights.

• VA OIG found deficiencies in flagging removed fiduciaries, with corrective actions implemented in 2025.

Official Resources

• VA Fiduciary Program Overview: https://department.va.gov/vba/fiduciary/

• Fiduciary Help (VA.gov): https://www.va.gov/resources/fiduciary-help/

• Fiduciary Claims Decision Review: https://www.va.gov/decision-reviews/fiduciary-claims/

• 38 CFR Part 13 – Fiduciary Activities: https://www.ecfr.gov/current/title-38/chapter-I/part-13

• 38 CFR § 13.100 – Fiduciary Appointments: https://www.law.cornell.edu/cfr/text/38/13.100

• 38 CFR § 13.30 – Beneficiary Rights: https://www.law.cornell.edu/cfr/text/38/13.30

• 38 CFR § 13.600 – Appeals: https://www.govinfo.gov/link/cfr/38/13?link-type=pdf&sectionnum=600&year=mostrecent

• A Guide for VA Fiduciaries (PDF): https://www.benefits.va.gov/FIDUCIARY/docs/fy-25-docs/va-fiduciary-guide-march-2025.pdf

• VA OIG – Fiduciary Oversight Report: https://vaoig.gov/reports/review/failure-flag-fiduciaries-who-were-removed-results-risk-vulnerable-beneficiaries

• Public Law 119-56 (Veteran Fraud Reimbursement Act): https://www.congress.gov/119/plaws/publ56/PLAW-119publ56_uslm.xml

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